Thursday, May 10, 2007
Well my dear fellow blogger, I am glad you have learnt your google 101 lesson but you are stupid enough to not read between the lines. In any case, I am not in the mood to entertain you using my blog as your beta test area for Google lessons. I am going to delete your comments and treat you the way I treat spam.
Friday, April 06, 2007
Friday, March 16, 2007
The way I see it, short term losses can be written off against short term gains but long term losses cannot be set off against long term gains since they are not taxable anyway! So it seems I need to just sell it and swallow my loss (and pride :-) )
Thursday, March 08, 2007
Update : You can pay advance tax online at NSDL website
Monday, February 26, 2007
The NSE website lists all the currently running IPOs and when you click on any one of them it actually gives you near realtime data on how much of subscription that the particular IPO has undergone during the offer period. If I see a large (1000 - 4000%) oversubscription especially in the institutional buyer's market, I figure that the big guys with their advanced research teams have figured out something interesting in this stock so I might as well buy it.
Mind you this works most of the time especially if you are planning to sell short term. There have been spectacular failures in this approach for me in the past but hey - this isnt exactly research you know! I am OK with the results that I have seen so far.
As far as getting an allocation goes, let us not even go there....!!!
I decided to start tracking the current NSE IPOs so I can plan this game better (of course it is a game - a gambling game - don't be dumb and think we have anything that is scientific here!). To make the IPO dates public, I initially added it to Google calendar. I am adding a link to the same on the right. If you use google calendars to track any of your dates, just clicking on the button will add my calendar to your list of available calendars.
Monday, February 19, 2007
F&O Market investments
Bonds (RBI, ICICI, REC etc.,)
Fixed deposits (Banks , third parties)
Equity Mutual funds
Debt mutual funds
Post office (POMIS)
Real estate (Apartments, vacant land)
Please dont post the actual amounts just the % distribution.
Sunday, February 18, 2007
Thursday, February 15, 2007
Indian tax laws for equity mutual funds (funds that invest > 65% of their corpus on common stock) specify that
- Short term ( less than one year) capital gains tax is 10%
- Long term capital gains is 0%
- Dividends paid are non-taxable
- Security transaction tax (STT) of 0.1% has to be paid on all SELL transactions
Indian tax laws for debt mutual funds specify
- Short term capital gains is treated as income (basically added to salary and taxed at the tax bracket you belong to)
- Long term capital gains is 10%
- Dividends paid are non-taxable in the hands of the investor but they undergo a tax called dividend distribution tax (DDT) (12.5% + surcharge + education cess) that the fund has to pay before declaring dividend. This effectively reduces the quantum of the dividend in your hands
- There is no STT.
So if you are in the highest tax bracket, it might make sense to opt for the dividend option when you are buying debt mutual funds since effectively you pay onl 13.xx% as tax on the dividend as DDT as compared to growth option.
For equity mutual funds, the verdict is very clear folks - growth is the direction in which you should be going.
Sunday, February 11, 2007
- Their offering is an ETF meaning - it will be traded on the stock exchange (NSE) after the new fund offer (NFO) period (between February 15 and 23rd, 2007) like any other stock.
- The "face value" is Rs. 100/- for 1 gram of gold and today's market price (say Rs 860/gm) would mean that the units are sold at a "premium" over the FV of Rs 760/-
- You can buy and sell the units of the MF on the exchange and you can also choose to get physical delivery of the gold or decide to deposit gold to obtain units (no details on how the logistics will work here)
- Fees:Investment management fees is 1.25% p.a. of the weekly average net assets outstanding for amounts up to Rs.100 Crores and 1.00% p.a. of the weekly average net assets outstanding for amounts above Rs. 100 Crores. There is no entry/exit load post listing for the fund but you will end up paying brokerage since these transactions are treated as stock. During NFO, the entry load is 1.5% upto 50L of investment
- The custodian (person responsible for managing the physical gold) is The Bank of Nova Scotia
- The scheme will have 90%-100% of their portfolio in physical gold and 0%-10% in Money Market instruments, Securitised Debts, Bonds and cash
- NAV : NAV will be calculated like any other mutual fund and will include all the expenses of the AMC. But they have the concept of a "creation unit" which represents 1000 units plus some cash component which is equivalent to apparently 1KG of gold. This creation unit applies only when you exchange physical gold for the Bees units. This is a facility available only to authorized participants (how are they determined? I dont have a clue!). So when an authorized participant reedems one creation unit he receives 1 KG of gold. I did'nt quite understand their example of buying creation units by depositing gold on Pg 26 (why did the assumption of price of gold drop to 850 from 860?). If someone can figure it out, let me know.
- You can pledge these units similar to the loan against shares schemes.
- Tax : This fund will be treated as a mutual fund other than equity which means that it will not get the benefit of short term (10%) and long term (0%) tax rates.
Well thats all for now folks. Please add your comments if you found more information.
Friday, February 09, 2007
- What is the tax implication for buying gold? Do we get tax rebates for buying a gold MF?
- Would a gold MF be treated as an equity MF or a debt MF with associated tax implications?
- When I sell my holding in the fund, do I have any extra exit loads because of liquidity risks?
- Will the price of the fund ever differ from the gold price? Considering this is more liquid than physical gold and traded mostly electronically, I would imagine that such advantages should allow the price of the fund to be at a premium to actual gold. Would this be the case?
You can always buy gold in T.Nagar... that institution would exist as long as Indians abound!
Thursday, February 08, 2007
- ▼ 2007 (11)